SAGUENAY, QUEBEC - (May 28, 2015) - Arianne Phosphate (the “Company” or “Arianne”) (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, reported its financial results for the three- month periods ended March 31, 2015. All amounts are in Canadian dollars unless noted.
“The Lac à Paul project was further improved by many positive developments over the first quarter of this year, which continued to strengthen the viability of our project both on an economic and social level,” said Jean-Sébastien David, Arianne Phosphate’s COO. “Much of our progress centered on increasing the quality and quantity of our resource, as well as lowering the anticipated costs associated with operating the mine. We are proud of the advancements made throughout the first quarter of 2015 and we are confident that this world class project will get its required authorizations for construction next fall.”
Q1 2015 Financial and Operational Highlights
• The Company announced a reduction of its operational estimated production cost of US$4.26 per ton representing a cost savings of almost 5% from the original Feasibility Study (FS). This should result in annual savings of approximately US$12.75 million, or close to US$330 million over the planned 26-year mine life. According to Arianne’s FS filed in October 2013, the Company initially projected an FOB Port of Saguenay cost of US$93.70 per ton for its premium quality 39% P2O5 concentrate.
• Through exploration activities completed in 2014, Arianne has identified new measured and indicated resources on the Paul Eastern Extension. Arianne’s updated resource estimate now shows a 5% increase in measured and indicated resources (702.7 million tonnes vs. 668.7 million tonnes) over its previously announced resources released on October 14, 2014.
• The Company announced that it has successfully completed a customer trial program that produced a phosphate concentrate with a superior grade and lower contaminants than previously ever achieved by the company. The customer trial produced 1.2 tonnes of phosphate concentrate with a grade of 40.0% of P205 and 0.03% of contaminants. The results surpass previous metallurgical test work that had produced a P205 concentrate of 38.8% with 0.089% of contaminants.
• The first public information meeting regarding the BAPE was held on February 18, 2015 in the city of Saguenay. This is an essential and vital process in order for the Company to secure its operating permit. The Bureau is a neutral and independent organization that reports to the Ministère du Développement durable, Environnement et Lutte contre les changements climatiques (MDDELCC or Minister), Government of Québec. The role of the BAPE is to make enquiries and to consult the public in order to provide informed input that will assist in government decision making with a sustainable development perspective.
Post Q1 2015 Highlights
• The Company has, over the last months, prepared and delivered an environmental impact study which was deemed having been completed by the Minister. The Minister has subsequently entrusted the BAPE with a first mandate (ie. holding a public information and consultation period). The impact study and other documents relating to the project have been made available to the general public. This was followed, from April 27 to April 29, 2015, by an initial information session for citizens from the community to ask questions relating to the project. Briefs can now be submitted in writing to the BAPE. The second information session hosted by the BAPE took place on May 26, 2015. Once the public hearings are over, the BAPE will draft its report and submit it to the MDDELCC who will then submit its recommendations to the Government of Québec which is responsible for making the final decision to authorize the project. The Company remains confident that it will be granted its operating permit in Q3, 2015.
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q1 2015.In the first quarter ended March 31, 2015, the Company incurred a net loss of $891,200, compared to $1,405,963 in the comparable period in 2014. The Company’s net loss and cash burn are consistent with other development stage mining companies.
The decrease in the net loss and the operating loss between the first quarter 2014 and 2015 is explained by the fact that the Company is actually focused of the process of the BAPE to obtain permitting which will lead to the construction and operation of the Lac a Paul mine.
At March 31 2015, the Company had $2.6M cash on hand that will be allocated towards general working capital and advancing the development of Lac à Paul in 2015. Based on current spending estimates for future project development, Arianne anticipates it will need additional financing before the end of 2015.
In 2015, Arianne will be focused on the ongoing advancement of its Lac à Paul Project. Expected milestones in 2015 include:
• Additional optimization of operating and capital expenses;
• Signing “agreements in principle” with First Nations to proceed with development of the Lac à Paul Project;
• Securing environmental permitting from appropriate government agencies; and
• Securing strategic partners and financing.
Arianne’s Management Discussion and Analysis and Financial Statements for the three-month period ended March 31, 2015 is available on the Company’s website and on SEDAR at www.sedar.com.
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release. Mr. David is also the Company’s Chief Operating Officer.
About Arianne Phosphate
Arianne Phosphate (“Arianne Phosphate Inc.”) (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants. The Company has 95,325,755 million shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements and Information
This news release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities regulations in Canada and the United States (collectively, “forward-looking information”). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects, “is expected”, “budget”, “scheduled”, “estimates”, forecasts”, “intends”, “anticipates”, or “believes”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.